Deprenyl Animal Health Inc. and Deprenyl Research Ltd. saidThursday that they have finalized a license agreement forrights to Alzene from Baker Cummins Pharmaceuticals Inc., awholly owned subsidiary of Ivax Corp. of North Miami, Fla.
Alzene is a composition of fatty acids to treat Alzheimer'sdisease. Preliminary data from Israel indicates that it mayimprove the cognitive functions of Alzheimer's patients, saidDavid R. Stevens, DAHI's president. Its mechanism of action isunknown.
DAHI of Overland Park, Kan., has assigned its interest in thelicense agreement to Toronto-based DRL, which holds 40percent of DAHI common stock. In exchange, DRL will pay DAHIa 10 percent royalty on Alzene sales made on a compassionateuse basis under Canadian health regulation prior to finalregulatory approval. DAHI (NASDAQ:DAHI) will receive nofurther royalties once the drug has received Canadian and U.S.marketing approval.
"The deal was structured to generate a royalty stream forDeprenyl Animal Health in its formative years," said Stevens.
A U.S. patent has issued and a Canadian patent application ispending. DRL will file an investigational new drug applicationin Canada in the next few weeks.
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